SUPPORTING ALL BC BUSINESSES TO DIVERSIFY THEIR EXPORT MARKETS AND GROW ALL BC (2025)

Issue

In context of the threat of US tariffs and their potential impact on the BC economy, the provincial government has a role to play in helping small and medium businesses (SMEs) to diversify their markets beyond the US, developing go-to-market strategies for not only international but inter-provincial trade as well, and tackling obstacles to export growth through new dedicated provincial programming built on previous successful models that augment existing federal programs.

Background

BC businesses are well-positioned to be strong exporters. Our placement on the eastern edge of the Pacific Rim region allows us physical access to the markets of Asia, Oceania, South and Central America, and the United States. We are also home to a diverse, educated and skilled workforce and a dynamic business community that produces the products and services that are desired worldwide.

BC has room to grow its export of goods and services and diversify its exports beyond the US. While BC represents about 13% of Canada’s population and nearly 14% of the national GDP, it only accounts for 7.6% of all Canadian exports. And while BC is less reliant on the US market than most other provinces, it still accounts for 52.8% of BC exports[1] at a time when access to that market is no longer reliable.

Further, BC has room to build on our export success with energy and forestry products by supporting growth in other sectors, as currently over 55% of BC merchandise exports are forestry or energy products, a rate “higher than the comparable share for Canada and for most other advanced economy jurisdictions.”[2] 

The opportunities for exports are there for the seizing, along with the much-needed economic growth, business activity and tax revenue that will come from expanding BC’s sale and exportation of goods and services outside our borders. And exporting is not only a path to growth — it drives innovation as businesses that expand into new markets are more likely to adopt new technologies, improve their operations, and diversify their customer base.

Challenges to Exporting

While exporting can represent significant opportunities for small and medium businesses, many struggle with the substantial challenges it can also present. Supply chain challenges, financial and cash flow barriers, a lack of market knowledge or expertise, and a lack of relevant contacts can all hinder businesses from pursuing export opportunities, even where demand may exist. Navigating the complex web of regulations, logistics, currency risk, and foreign business practices required to establish a foothold in a new market can be too daunting for many businesses.

Exporting requires upfront investments in compliance, transportation, and production scaling, all of which can be costly, especially for smaller businesses. Additionally, accessing new markets may require extensive networking and market research—tasks that many businesses lack the resources or expertise to undertake effectively themselves.

Smaller businesses, particularly those located outside of major urban centres, often face unique barriers when seeking to enter new markets, including more limited access to capital, in-house expertise, and external supports, in addition to logistical challenges from potentially being further afield from trade infrastructure.

BC could help address all of these challenges with a new provincial support program that would help small and medium businesses to both access the knowledge and expertise they need to compete internationally, but to also actually take the actions necessary to do so by contributing real dollars towards those actions, at a scale accessible for those businesses.

Complementing Existing Programs

Current support programs in BC, such as Export Navigator, provide businesses with guidance, plans, and advice on what steps to take to develop their export strategy. This kind of guidance is critical and should be supported and expanded. However, new programming should go further with dedicated funding to help SMEs actually take those actions such as developing new formulations, creating new packaging, attending international trade shows, or conducting tailored market research.

Additionally, while federal trade programs, notably the CanExport Grant, do provide support for businesses looking to expand internationally, a BC-specific export support program would complement and enhance this program for businesses in our province.

A provincial program could fund early-stage export preparation, such as market research and business development, positioning companies to later access CanExport funding for larger initiatives. Additionally, a BC-led program could support efforts towards interprovincial trade -- which is not eligible under the CanExport program-- helping businesses grow within Canada as well as abroad.

Finally, focusing exclusively on BC businesses would be more accessible for local businesses than waiting to compete during the competitive, once-annual application period of the national program, which is significantly over-subscribed. In the 2024–25 fiscal year alone, the CanExport program received over 4,400 applications, yet only 36% were approved.

Building On Successful Models

There are models of targeted funding programs that support small businesses with generous cost-sharing, which could be used as templates for this new export program.

For example, the CanExport Grant offers cost-sharing of 50% of the project costs. In BC, during the COVID pandemic, the Launch Online Grant successfully helped BC businesses expand their digital presence by covering 75% of eligible expenses[3] for building websites and e-commerce sites, ensuring that businesses had the financial support they needed while still requiring them to invest in their own success.

THE CHAMBER RECOMMENDS

That the Provincial Government:

1. Prioritize investment towards creating a new export diversification program that delivers direct funding to businesses, including at an appropriate scale for small and medium-sized businesses, using a cost-sharing model that supports go-to-market strategies and the undertaking of other tangible business activities that further international and inter-provincial exports.